The buyer of a certain machine may pay either P50k cash down payment & P10k annually for the next 6 years every beg’g of the year, or pay P60k cash & P10k annually for the next 5 years, 2 years after. If money is worth 12% compounded annually, what is the value of the 1st option? a). P69,047.762 b). P96,047.762 c). P66,047.762 d). P96,407.672

The buyer of a certain machine may pay either P50k cash down payment & P10k annually for the next 6 years every beg’g of the year, or pay P60k cash & P10k annually for the next 5 years, 2 years after. If money is worth 12% compounded annually, what is the value of the 1st option? a). P69,047.762 b). P96,047.762 c). P66,047.762 d). P96,407.672

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...

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